Everyone knows New York has the nation’s highest property taxes.
But it gets worse.
The state also has the nation’s most inefficient, confusing, unfair and generally unworkable system for collecting and administering property taxes, according to a study.
The Empire State ranked last in a survey by the Council on State Taxation, which gave New York the only “F” grade, just ahead of Delaware, Illinois and Pennsylvania.
The highest ranking, an “A-,” went to Maryland.
The survey, The Best and Worst of Property Tax Administration, doesn’t address the amount of taxes New Yorkers pay. And it focuses on property taxes paid by businesses.
Because New York, with a few exceptions, taxes commercial and residential properties the same way, the complaints resonate with everyone.
“A lot of the same issues apply,” said Douglas Lindholm, president and CEO of the council, a trade association that looks at state and local taxation issues facing businesses. Members include Fortune 1000 companies with multi-state operations. Board members include executives from General Electric, Coca-Cola and Chevron as well as state tax officials.
“It basically looks at the fundamental fairness of property taxes,” he said of the survey. “New York has a tendency to make things a little more difficult.”
Among the problems: Localities can set their own assessments rather than adhering to a uniform statewide standard.
That means one town’s taxes may be based on out-of-date assessments while a neighboring municipality is current.
Also, there are variations in how over-paid taxes are refunded and payment deadlines. Even the forms aren’t standardized.